Dutch government objects to proposed US law restricting ASML's China exports

ASML Holding NV ADR

ASML Holding NV ADR

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Dutch government opposes extraterritorial reach of proposed U.S. MATCH Act

Trade Minister Sjoerd Sjoerdsma warns law could harm Dutch semiconductor firms' market position

Chinese officials expected to object to MATCH Act during Trump's visit

By Toby Sterling

- The Netherlands has objected to a proposed U.S. law that could further restrict exports to China by Dutch chipmaking equipment maker ASML ASML.AS, the Dutch government said in written answers to questions from parliament this week.

The answers by trade minister Sjoerd Sjoerdsma, dated May 12, were reported earlier by the South China Morning Post.

Sjoerdsma said Dutch Prime Minister Rob Jetten and other senior officials had raised concerns about the proposed U.S. MATCH Act during a visit to the United States in April by the Dutch king and queen, which included meetings with U.S. President Donald Trump.

The proposed law seeks to force U.S. allies to follow Washington’s export controls as part of efforts to curb China’s ability to make advanced semiconductors. Equipment made by ASML, Europe’s most valuable company, is named in the legislation proposed last month.

Chinese officials are also expected to raise objections during Trump’s visit this week.

The Netherlands has previously aligned with the United States on restrictions that prevent ASML from selling its most advanced equipment to Chinese customers, citing security concerns.

But Sjoerdsma said the Dutch government opposed the broad scope of the proposed U.S. law, warning it could hurt the market position of semiconductor companies, including Dutch firms. A third of ASML's sales last year were to customers in China.

The government’s main objection was the bill’s “extraterritorial” nature, he said, referring to provisions that allow Washington to impose restrictions on companies outside the United States.

“The Netherlands’ starting point is that every country is responsible for its own laws,” Sjoerdsma said.

ASML dominates the market for lithography tools, which use lasers to create the circuitry of chips.

Sjoerdsma said the U.S. rules “could result in companies no longer being allowed to perform maintenance or support, even for machines already delivered", disrupting international commerce.